ZIMI LIMITED — Interim / Quarterly Report 2011

Apr 28, 2011

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WHL Energy Ltd ABN: 25 113 326 524 2 Leura Street, Nedlands Western Australia P.O. Box 3445, Broadway Nedlands Western Australia 6009 T: +61 8 6500 0271 F: +61 8 6389 1151 www.whlenergy.com

ASX/MEDIA RELEASE 29 APRIL, 2011

WHL ENERGY QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED MARCH 31, 2011

HIGHLIGHTS

• Completed company-changing agreement to acquire 100% of 35 exploration blocks, covering more than 20,700 sq. km offshore Republic of Seychelles, through the acquisition of SEYCO Energy Pty Ltd.

• Large 2D seismic programme acquiring more than 7,000 km of data over WHL blocks completed.

• Early review of the 2D seismic shows data quality significantly improved.

• Independent studies confirm multi-billion barrel mean oil-in-place potential for a number of drilling leads.

• Subsequent to March quarter end, a new seismic program has now been completed after agreement signed to acquire a further 887km of 2D seismic over key leads.

ACQUISITION OF 35 OFFSHORE SEYCHELLES EXPLORATION BLOCKS

On March 1, WHL Energy Limited (“WHL Energy” or “the Company”) announced it had completed the “company changing” agreement to secure rights to 100% of 20,700 square kilometres of highly prospective oil and gas exploration interests in the shallow water area off the southern Seychelles coast. This interest was secured via the acquisition of 100% of SEYCO Energy Pty Ltd and its wholly owned subsidiary Petroquest International Inc.

The acquisition of the 35 Seychelles exploration blocks (“WHL blocks”) followed the successful completion of an independent technical, legal and taxation review of SEYCO Energy Pty Ltd and Petroquest International Inc.

The prospectivity of the WHL blocks was highlighted in late February when WHL Energy published the results of an Independent Study completed by Isis Petroleum Consultants Pty Ltd (“Isis”) which found:

• that there is good evidence of a working petroleum system in the area of the WHL blocks. The evidence includes surface seeps, tar occurrences observed on Seychelles islands and offset well data. In addition, studies from analogue basin data show potential for the presence of good quality, mature source rocks and prospective reservoirs.

• the larger structures identified in the WHL blocks have the potential to contain multi trillion cubic feet (Tcf) / multi 100 million barrel (MMbbl) range hydrocarbon accumulations.

• Key existing leads were validated and new leads were identified.

Subsequent to the end of the March quarter, findings from further Isis studies were released which:

• Confirmed 12 leads in WHL’s Seychelles blocks across 4 different play types.

• Mean oil in place in the leads ranging from166 million barrels and 5.44 billion barrels.

WHL Energy subsequently announced on April 8 that it had resolved to raise up to $10 million through the placement of up to 312.5 million shares at 3.2 cents per share.

The funds raised pursuant to the placement are being used to fund the completion of the Seychelles seismic acquisition program, including the regional geological synthesis and the in-depth interpretation of this 2D seismic data.

On April 18, WHL announced it had signed a new agreement with Fugro Data Services AG (“Fugro”) and Geomahakarsa Ltd for the acquisition of a further 887km of 2D seismic covering predominantly the Creole and Junon Bank leads in Area 3 of its Seychelles exploration interests.

WHL Energy elected to commission the acquisition of additional seismic, following positive results indicated in the initial seismic data review and the Independent Expert Report from Isis.

The Company elected to take advantage of having a seismic vessel available in the Seychelles which reduced the cost and time involved in acquiring this additional seismic data. Consequently the acquisition program was able to begin immediately. The data from the infill seismic program will enable WHL Energy to assess any remaining uncertainties related to the leads that have been identified to date and further assist the Company in identifying suitable drilling leads.

The seismic acquisition program including the additional 887 km of seismic is expected to be completed by the end of April.

UK WIND FARM PROJECTS

Progress continues to be made on the fresh application for the planning consent for the Wings Law Wind Farm (“WLWF”) as part of the Ladymoor Renewable Energy Scheme in North Ayrshire, Scotland. WHL Energy is aiming to obtain planning consent for the 48 MW WLWF. The new application follows the recent release of the outline planning consent by North Ayrshire Council on 23 March 2011 for the nearby 5 MW hydrogen balancing demonstrator facility. The WLWF proposal is part of WHL Energy’s Ladymoor Renewable Energy Project, which would contain the UK’s first grid connected, commercially-sized hydrogen balancing facility, with WHL Energy holding the exclusive patent on this technology in the UK.

The Company has placed an order with BAE Systems, a global company engaged in the development of advanced aerospace systems, to commence the first phase of the aviation mitigation for WLWF. It is proposed that this work will be funded through a cash injection from a proposed farmout arrangement covering the project, including the responsibility for all future costs.

The proposed farmout agreement that is subject to final terms and due diligence by the farmin partner will remove the financial risk to WHL Energy of further costs while the opportunity is developed.

The Company is also currently engaged in due diligence on the potential sale of three, additional wind farm projects in its portfolio.

US OIL AND GAS PROJECTS

The Company continues to seek to monetise its US oil and gas asset suite.

OVERVIEW

Kansas Oil and Gas Projects

An independent report was commissioned before December 2010 seeking to obtain an independent value of the combined asset of both the Kansas Gas and Oil projects. The two projects utilise some of the same staff and field assets but have separate joint venture partners. The level of production from the combined projects is insufficient to cover costs and the future investment required to expand production. Subsequent to half-year end, the Board agreed to sell these assets subject to a bid exceeding the valuation received.

The Company has finalised during the Quarter the removal of several small agreements for overriding royalty interests to assist in the ability to market the Kansas assets. The Company also began drilling of a shallow oil well in late March that will be put into production in May.

Kentucky Shale Gas Project

The Company has been the operator of the Kentucky Shale Gas project and has developed nine wells in the area together with its joint venture partner. After reasonable initial flush production the wells quickly depleted, so further work was undertaken to recomplete the wells. The results after the recompletion still did not produce sufficient gas for the wells to be deemed economic.

As reported in the December Half Year Accounts the Company had agreed to plug and abandon this asset. Applications to transfer seven of the wells to the property owners have been lodged, while applications to plug the two remaining wells are awaiting approval. The sale proceeds from the surplus surface and other miscellaneous assets are expected to exceed the plug and abandonment costs.

Wardlaw Oil Project, Texas

The Company has a 50% interest in the Wardlaw Oil project in Texas. Following a protracted dispute with the operator the Company sought the return of a prepaid drilling contribution. The operator communicated with the Company that this was outside the original agreed terms for the project. During 2010, the Company and the Operator have continued to engage in discussions but have not yet reached a mutually acceptable agreement.

The Company has engaged local legal representation to review the status of a potential claim against the operator. Based upon the financial state of the operator the Company has concerns regarding any future recovery.

Tennessee

The Company continues to negotiate the sale of the Tennessee Venture to the joint venture partner as an exit strategy from this asset.

End.

End.
FURTHER INFORMATION
Shareholders/Investors:	Media contact:
David Rowbottam	Colin Hay
WHL Energy Ltd	Professional Public Relations
T: +61 8 6500 0271	T: +61 8 9388 0944
**E: contact@whlenergy.com **	E: colin.hay@ppr.com.au

About WHL Energy Limited

ASX-listed WHL Energy Ltd (ASX: WHN) is a diversified energy company with interests in a large petroleum exploration asset off the coast of the Republic of the Seychelles, a suite of Renewable Energy Projects and Prospects in Europe and onshore oil and gas producing and exploration holdings in the United States of America.

The Company’s “flagship” project is its very large offshore Seychelles oil and gas interests. This 20,700km2 exploration holding is considered highly prospective for potentially very large hydrocarbon targets, and WHL Energy is currently undertaking further work to gain a higher understanding of that potential as it progresses the Seychelles oil and gas assets towards farm-out and drilling.

Independent studies have confirmed the potential of 12 leads across 4 different plays in WHL Energy’s Seychelles exploration holdings and estimated that these leads have the potential to contain unrisked mean oil in place of between 166 million barrels and 5.44 billion barrels per lead .